Prime minister Vajpayee on Monday declared that every step would be taken to improve the delivery mechanism for providing grains at the cheapest possible rates. This was part of his government’s commitment to affording food and financial security for the weaker sections of society as well as senior citizens, he asserted as he launched an insurance-linked pension scheme for individuals in the 55-plus age bracket.Finance Minister Jaswant Singh announced a few changes in the Varishtha Pension Bima Yojana, including an exit option and a loan facility. The scheme will give policy holders a steady stream of 9 per cent return, whatever the prevalent interest rates in the market.Announced in the 2003-04 Budget, the scheme offers a minimum monthly pension of Rs 250 and a maximum of Rs 2,000. Singh said at its launch here that the new insurance scheme, as originally envisaged, did not have an exit option and no provision for loan. Now, however, “if some senior citizen so desires, he can discontinue the policy after 15 years. In such an event, the deposited amount will be returned in lumpsum to the policyholder”, he said.“Apart from this, up to 75 per cent of total deposited premium will be allowed in form of a loan after the policy has run for three years. The rate of interest will be determined by LIC from time to time. Presently, the rate of interest is 10.5 per cent”, he added.The minimum monthly pension of Rs 250 would be available on a one-time lumpsum premium of Rs 33,335 and the maximum pension of Rs 2,000 every month on a single premium of Rs 2.66 lakh. The community-based universal health insurance scheme also launched by the Prime Minister offers health protection and easy access to good health services to the disadvantaged sections. Under this scheme, a premium of Re 1 per day for an individual, Rs 1.50 per day for a family of five and Rs 2 per day for a family of seven will entitle them to reimbursement of medical expenses upto Rs 30,000 towards hospitalisation, a cover for death due to accident up to Rs 25,000 and compensation due to loss of earning at the rate of Rs 50 per day up to a maximum of 15 days.For below poverty line (BPL) families, the government will contribute Rs 100 per year towards their annual premium. The policy is meant for groups consisting of minimum 100 families. The scheme will be on the lines of mediclaim policy.Hospitals run by NGOs, state governments, trust hospitals or select private hospitals with fixed schedule of charges will be enlisted for providing benefits. Pre- and post-hospitalisation as well as domiciliary hospitalisation shall be excluded from the scope of the policy.The health insurance scheme would be run by the four state-run general insurance companies—National Insurance, New India Assurance, Oriental Insurance and United india Insurance. “Insurance premium in India which at present constituted only 2 per cent of the gross domestic product should be raised to 10 to 15 per cent,” the Finance Minister said.
